FAQ — Hard Money Land Loans | Roundrock Realty

Question 1

What is a hard money loan?

Accepted Answer

A hard money loan is a short-term, asset-based loan secured by real property. Unlike traditional bank loans, hard money lenders focus primarily on the value of the collateral — the land or property — rather than the borrower's credit history or income documentation. This allows for much faster approvals and closings.

Question 2

How are hard money loans different from bank loans?

Accepted Answer

Bank loans typically take 30–90 days, require extensive documentation, and are heavily credit-driven. Hard money loans close in 7–21 days, require minimal documentation, and are underwritten based on the asset. The tradeoff is higher interest rates and shorter terms — but for investors who need speed and certainty, it's often the right tool.

Question 3

What types of properties do you lend on?

Accepted Answer

We specialize in land and development lending: raw land, agricultural parcels, infill lots, undeveloped acreage, and ground-up construction projects. We do not lend on owner-occupied residential properties.

Question 4

What is your maximum LTV?

Accepted Answer

We lend up to 70% LTV on bridge loans and up to 65% LTV on land acquisition and construction loans. LTV is based on the as-is appraised value of the property.

Question 5

What loan amounts do you offer?

Accepted Answer

Our loans range from $50,000 to $5,000,000 depending on the program. Contact us for larger transactions — we handle them on a case-by-case basis.

Question 6

Do you check credit scores?

Accepted Answer

We do pull credit, but it is not the primary underwriting factor. We focus on the deal — the property value, your exit strategy, and your experience as an investor. Borrowers with challenged credit can still qualify if the deal is strong.

Question 7

Do you lend nationwide?

Accepted Answer

Yes. We lend in all 50 states. There are no geographic restrictions on our programs.

Question 8

How fast can you close?

Accepted Answer

Most loans close in 7–14 days from application. Bridge loans can close in as few as 5 days when all documentation is in order. Construction loans typically take 10–21 days due to the additional underwriting required.

Question 9

What documents do I need to apply?

Accepted Answer

To get started, we need: a completed loan inquiry form, property details and purchase contract (if applicable), your exit strategy, and a recent appraisal or BPO if available. We'll tell you exactly what else we need after reviewing your inquiry.

Question 10

What is an exit strategy and why does it matter?

Accepted Answer

An exit strategy is your plan for repaying the loan — typically a sale of the property, a refinance into long-term financing, or completion and sale of a development project. We require a clear, credible exit strategy on every loan because hard money loans are short-term instruments, not permanent financing.

Question 11

Are there prepayment penalties?

Accepted Answer

Most of our loan programs have no prepayment penalty. If you sell or refinance early, you pay off the loan without additional fees. Confirm with your loan officer as terms vary by program.

Frequently Asked Questions.

About Hard Money Loans

Loan Terms & Eligibility

The Process

Still Have Questions?